Contingencies of Sale

The sale price for McCarley Gardens will be $15 million. The
sale of the property is contingent upon HUD's approval and the
completion of several conditions designed to assure that the needs
and concerns of the residents of McCarley Gardens are met:

• Within three years, Oak-Michigan Housing Development
Corporation will develop a plan to relocate the residents of
McCarley Gardens into new and improved housing. The plan must be
approved by HUD.

• Upon HUD's approval, Oak-Michigan Housing Development
Corporation has four years to develop the approved housing and
relocate residents at no extra cost to the residents.

• Oak-Michigan Housing Development Corporation and UB will
establish a six-member joint panel to conduct a two-year assessment
of economic opportunities for Fruit Belt and East Side residents.
The panel will make recommendations for job training, skills
development and educational opportunities that will enable
community residents to take advantage of opportunities created by
redevelopment of Buffalo's East Side.

• UB will support and encourage the participation of
minorities, women and persons with disabilities in both
construction and vendor opportunities that occur on the
property.

Over the past year, Oak-Michigan Housing Development Corporation
has met several times with McCarley Gardens and East Side residents
to determine their needs and preferences -- holding Town-Hall style
forums and focus groups with hundreds of community members. The
Oak-Michigan Housing Development Corporation will continue to do so
in the weeks and months ahead to assess community needs and, at the
request of Assemblywomen Crystal Peoples-Stokes, will develop
Community Partnership Agreements.

With UB's Henry Louis Taylor Jr., director of the UB Center for
Urban Studies, Oak-Michigan Housing Development Corporation has
begun obtaining feedback and information for the creation of a
relocation plan for McCarley Gardens residents that will also
address such social needs as personal safety and access to day care
and grocery stores, among other considerations.